international business Bus425
Chapter One Questions
What is international business all about? In your answer, be sure to include a definition of the term.
International business: the study of transactions taking place across national borders for the purpose of satisfying the needs of individuals and organizations
What does international trade consist of?
Exports: goods and services produced in one country and then sent to another country.
Imports: goods and services produced in one country and brought in by another country.
3. What role does the World Trade Organization play in the international business arena? Is the WTO helpful to international trade or is it a hindrance? Why?
An international organization that deals with rules of trade among member countries. Enforces the provisions of the (GATT). Acts as a dispute-settlement mechanism
4. How do the four determinants of national competitive advantage help explain how companies can maintain their economic competitiveness? Be complete in your answer.
5. Using the Porter model, what are the determinants of Wal-Mart’s competitive advantage?
Chapter Two Questions-----------------------------------------------------------------------------
6. What is a multinational enterprise? Is it likely that the number of MNEs will increase during the next decade? Why?
A company headquartered in one country but with operations in one or more other countries.
MNEs often downplay the fact that they are foreign held.
7. Why do firms become multinational enterprises? Identify and discuss four reasons.
8. How successful are the large industrial MNEs? What accounts for this?
9. How has Zara used the strategic management process to help it become a successful multinational?
10. Why does Starbucks rely on licenses for most of its international operations? Does the firm risk the dissipation of its managerial or technological advantages?
Chapter Three Questions
11. What is FDI all about? Put it in your own words.
Why are MNEs interested in investing in Eastern Europe?
12. How much FDI does the United States and Japan have in the EU? What conclusions can you reach based on these data?
13. What is an FDI cluster? Why are certain countries such as Mexico and Venezuela more likely to be in the United States cluster than in the EU cluster?
14. Why does Toyota choose to manufacture in the United States?
15. In what way can a keiretsu approach be of value to US and EU companies in becoming more competitive worldwide? Explain.
Chapter Four Questions
16. As political systems change, economic systems follow. What does this statement mean?
17. How does a centrally determined economy differ from a market-driven economy? Explain.
18. What is the purpose of research consortia? What is their future likely to be? Why?
19. Some of the primary ways that MNEs use strategic planning to benefit from economic integration efforts is through strategic alliances and acquisitions. How do MNEs do this?
20. How do MNEs seek to localize their business operations? Describe three steps that they take.
Chapter Five Questions
21. In your own words, what is meant by the term culture?
22. In what way do ethnocentrism and misconceptions about other cultures inhibit those doing business internationally?
23. Why are cultural differences an important factor when adapting products for new overseas markets?
24. Why are work attitudes of importance to MNEs? Cite and describe two examples.
25. In the Pharmacia–Upjohn merger, how did employment practices and workplace regulations differ among the Americans, the Swedes and the Italians, and what impact did these differences have on the operational efficiency of the merged company?
